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By continuing to use the site you agree that we can save them on your device. Cookies are small text files which are placed on your computer and which remember your preferences/some details of your visit. Our cookies don’t collect personal information. For more information, please read our updated privacy and cookie policy, which also explains how to disable cookies if you wish to.

Customers with interest only mortgages

Repaying your mortgage at the end of your term

Is all or part of your Co-operative Bank or Britannia mortgage on an interest only basis? If so, this means your monthly payment pays only the interest charges on your loan. It is important that you plan how you will repay the outstanding balance on your mortgage at the end of the mortgage term.

You should check regularly that your plan remains on track. If your plan does not provide sufficient funds to repay your mortgage at the end of the term, you should make alternative arrangements and it may be necessary to sell your property.

Worried about repaying your final balance?

Don’t delay - the sooner you take action the better. There are a number of ways to close the gap between your outstanding mortgage balance and the value of your current repayment plan e.g. An investment or savings scheme (such as ISA, endowment policy or pension lump sum) which is used to repay an interest only mortgage at the end of the term. In addition, the following options are available:

SwitchYou could convert some or all of the outstanding balance of your loan to a capital & interest repayment mortgage over a term suitable and affordable to you. We will not charge you for switching from an interest only mortgage to a capital & interest repayment mortgage. This option will ensure that your mortgage will be repaid at the end of the term. If you wish to discuss this matter further please contact us on 08000 288 288.

OverpayMaking additional payments will reduce your mortgage balance. Early repayment charges may apply to overpayments, however, you may be able to overpay by up to 10% of your mortgage balance without penalty. This will be stated in your mortgage documentation.

Independent Financial AdviceIf you have concerns regarding your existing repayment plan and require advice on suitable plans we strongly recommend that you seek advice from an Independent Financial Adviser.

You’ll find some useful information and free impartial advice about interest only mortgages from the Money Advice Service.

Please remember it is your responsibility to ensure that you have enough funds to repay your mortgage at the end of the term.

Your home may be repossessed if you do not keep up repayments on your mortgage

The Co‑operative Bank p.l.c. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (No. 121885). The Co‑operative Bank, Platform, smile and Britannia are trading names of The Co‑operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales No.990937. Credit facilities are provided by The Co‑operative Bank p.l.c. and are subject to status and our lending policy. The Bank reserves the right to decline any application for an account or credit facility. The Co‑operative Bank p.l.c. subscribes to the Standards of Lending Practice which are monitored by the Lending Standards Board.